On January 1, 2018, Chapman Corp. sold 8% bonds that mature in five years. The bonds have a face amount of $600,000 and semiannual coupons, payable every June 30 and December 31. The issue price of the bonds was $553,670, which implies a yield of 10%. What is the total amount of interest expense that Chapman will recognize over the five year term of the bonds? (Round your final answer to the nearest ten dollars.)

a. $46,330

b.$240,000

c. $286,330

d. $313,670

e. None of the above

Refer to the information in question #6. Chapman uses the effective interest method to amortize any discounts or premiums. How much interest expense should Chapman recognize on its 2018 income statement? (Round your final answer to the nearest ten dollars.)

a. $24,000

b. $27,680

c. $48,000

d. $55,370

e. $55,550

Refer to the information in questions above. How much interest expense should Chapman recognize on their 2019 income statement? (Round your final answer to the nearest ten dollars.)

a. $27,870

b. $48,000

c. $56,100

d. $56,120

e. $56,330